Simcountry
Forum General CEO Enterprises becoming obsolete?

CEO Enterprises becoming obsolete?

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Drew
08 Jun 2012 23:34 Link
With that logic the common market is also a fool's errand. Not saying it isn't, but if that is the case then this really needs to be fixed right? If it doesn't work to feed your own supplies because profits are too low then why does the common market exist? too screw over your trade allies?
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Marshal Ney
11 Jun 2012 05:50 Link
The common market is not a fool's errand. The way it is utilized however, is.

Vertical Integration - I'll look into it. But again, supplying those at 190 to yourself, and foregoing selling the same for 390 is a loss of profitability. It all depends upon your corporations and supplies. I'm looking into militaristic mercantilism myself.
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Lord Lee
11 Jun 2012 13:50 Link
Profits going up in Enterprise:

AAA on Little Upsilon made $594.56B last game month and on average is making about $500B a game month.

Lord Lee
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jansen
12 Jun 2012 03:00 Link
im making severe negative profits with 100 corps id like to see some changes as i play pure CEO
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Pat Quinn
14 Jun 2012 23:48 Link
SO, I was thinking, that a 100-120Q Electric Power and 100-120Q Factory maintenance wouldn't be unprofitable, and would be a solid way to start your variable supply quality trading strategy through vertical integration. Thoughts?
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Phoenix King
15 Jun 2012 04:06 Link
dont ry vertical intergration in this sim, not a good way to make profits but it is a good way to have stable inventory.
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Crafty
15 Jun 2012 17:21 Link
Horizontal differentation.

The only way to go ;P
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Drew
16 Jun 2012 18:10 Link
I'm not gonna argue really, because in this sim you guys are right. Why make a corp with limited profitibility when you can instead make a corp of the most profitible industry at the time? But if you think of the big picture in terms of every corp on the planet it causes market stability. One way or another you need supplies they cost money, you can control that cost. If they are unprofitable that sucks, if you are capable of cutting costs more to your profit centers then the loss it is a sound investment. But since this isn't always the case in which the loss can be larger the same holds true about the common market, they sell to their trade partners for a reduced rate, essentially crushing their profitability the exact same way as if you creating a corp to replace them. This all leads back to the intent of this thread. Independent (control) costs are too high for corps that not only make supply corps and the common market completely unusable and not only creates a major instability in the markets, but also makes it much more profitable to use state corps in the place of enterprise corps. Not in respect to the country but in respect to the corporations profitibility in the end that is what matters. Because the incentive of the CEO has vanished with the exception of higher game levels and sheer volume. I don't attribute this to CRU like most others but excessive inputs to supply the outputs of corporations. How many steaks does one cow make? Now if the steak also requires a trillion services, and 1 million Kwatts of power, can the steak really be a profitable industry? This was an exaggeration obviously and steak isn't an idustry (i simply didn't want to do the math). Andy said somewhere that he will make moves to increase profitibility but lowering output in certain industries like for exaple the recent reductions in FMU's and production plants don't increase profitibility because they are industries that will merely suffer those losses. Since profit margins are spread so thin, and my state corps have been making bills a month and my enterprises sometimes touch 800m but usually fall between 350-550m there's a little dissonance there. a corp takes like 67B to start up 67000/300=18.6111 years too pay for itself with minimal profits afters that. Cutting CRU at that end will just end the incentive for countries, lowering fixed costs will make the game unrealistic. The only ways to fix this VERY REAL problem is for corps to increase their outputs further in comparison to other costs for enterprises or decrease needed supply volume. To cement my point think about the world market, with infinite money and employees how many corps at 100% would it take to balance the supply and demand? YEAH, a ton because each one you make supplies nearly the exact amount in demand for other products.
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Marshal Ney
16 Jun 2012 22:31 Link
Just remember one thing about basic economics - the creation of wealth. Enterprises and corporations are third rate cousins at wealth creation, no matter where they are located. Countries and the war game is where wealth creation (ie input from outside the player base) shines. That's why I'm dropping economics in favor of mercantilism.

Market stability via the creation of corporations is a pipe dream. Even if enough corporations were created, prices will still fluctuate wildly in certain products, and that will increase in the future. Too many recessionary changes without corresponding fiscal policy have ensured that market cornering and dumping will continue to proliferate. The drops in corporate value needs to be balanced with a reduction in the monetary supply in proportion to the loss of value. While I am sure all the long term veterans have worked hard to get to where they are at - multiplying their game advantage by these measures is a slap in the face of everyone else. There are really no measures I can see to prevent that - even though in real life, cornering a market is extremely hard to do, as the Hunt brothers learned to their sorrow. We have spending limits already, implementing selling limits would help market stability immensely. (and I applaud the US for their recent efforts in this area.)

I no longer really care if the Enterprises I run make a profit or not, as I'm setting up to be able to sustain trillion dollar per game month losses. And that isn't hard to do under the present system - if you run a country. Then you can be the market's master - instead of it's slave.
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Phoenix King
17 Jun 2012 08:15 Link
Try to get your production levels above 115% all the way to 121% you should be able to make alot more profit.
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Tom Morgan
17 Jun 2012 10:12 Link
I don't play CEOs for fun. I play them to supplement my empire, and I find that I can leave a CEO for a week without even bothering to check in, and it will have made a few trillion. Boom. Easy money. It's easily worth it. If it ain't being profitable, then change some trade strats, relocate some corps, tweak some settings, and we're set.

Just a question- what does everyone else have as their default salary? Mine's 225 but if hiring is lower than usual I raise the amount for an individual corp.
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Crafty
17 Jun 2012 18:01 Link
Lol, we used to run corps at 1000 - 1200 salary here a while back.
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Christopher Michael
17 Jun 2012 18:03 Link
Yep....things sure have changed.
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dboyd3702
18 Jun 2012 00:26 Link
You should be able to make profit just by selling products that are in a constant high demand, however from what I see the GM still has a heavy hand in the buy and sell values.
I just took a look at Books and Newspapers for instance, over the last nineteen months demand on WG has never been able to catch up to supply (The best was 13 months ago at about a shortage of 880M) yet the price follows a very obvious pricing pattern of down, down, down, up, down, down, down, down, up and repeat. Why is the price going down at all (Not to mention most other products in short fall follow the same pattern)?
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Christopher Michael
18 Jun 2012 01:43 Link
Andy said a mouth full when he stated on another thread that "Fair price is not always the free market."

Though he was talking about gold coin exchange rates, it is obvious that this philosophy is also occurring on the world markets.

They are not letting supply and demand dictate pricing.....that is more clear now than it ever was.

SOURCE THREAD: Why aren't there any gold coins to trade for game money available? (Little Upsilon)
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SuperSoldierRCP
18 Jun 2012 02:31 Link
I agree with crafty

I used to run 1100salaries in all corps and make 151% production with a PROFIT of a few Billion

I HAD NUKE CORPS TURNING A PROFIT!!!(thats hard) now you barely can do 500 without busting the bank
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dboyd3702
18 Jun 2012 02:37 Link
And the countries made a profit as well...
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Marshal Ney
20 Jun 2012 03:09 Link
As a related question, what happened to the service industry at that time? I note that in doc's the GM's reserve the right to enter into that market.

Was there a cabal of people manipulating the markets?